Episode Overview
Title: AI, Human Ingenuity, and the Next Era of Supply Chains
Podcast: Supply Chain Now
Date: September 15, 2025
Host(s): Scott Lewton and Tevin Taylor
Guest: Gaurav Malhotra, Partner & Supply Chain Technology Leader at EY
This episode dives deep into the intersection of artificial intelligence (AI), human creativity, and the evolving landscape of global supply chains. Through the insights of Gaurav Malhotra (EY) and commentary from hosts Scott and Tevin, listeners are guided through common misconceptions about AI, overcoming "pilot purgatory," practical examples of AI-driven value, workforce upskilling, and a forecast for the next five years of supply chain innovation.
Key Discussion Points & Insights
1. Setting the Stage: Values, Global Experience, and Personal Connections
- Guest Introduction: Gaurav Malhotra brings over 25 years of experience in supply chain technology, logistics, and team leadership, especially in global enterprise settings [03:07].
- Personal Story: Gaurav shares a unique supply chain story from his family’s pilgrimage to a Kauai monastery—highlighting the global logistics of temple construction (hand-carved in India, shipped, and assembled over decades in Hawaii) [05:34]. This kicks off the theme: “There’s a supply chain behind everything.” [06:53]
- Disaster Response Lesson: Gaurav recounts going through a tsunami evacuation in Kauai, drawing parallels to the need for agile, humanitarian supply chain responses to sudden disruptions [07:44].
2. The Role of EY in Supply Chain Transformation
- Strategic Consulting: EY helps organizations leverage technology strategically, focusing on creating integrated, holistic value across end-to-end supply chains [09:51].
- Competitive Advantage: Modern supply chain tech is no longer a differentiator but an expectation—companies need to break down silos and drive outcomes at scale [11:29].
- Integrated Approach: “We help our clients create the right value and the right outcomes for their supply chains in an integrated, holistic manner…” – Gaurav Malhotra [10:42]
3. AI in Supply Chains: Myths, Misconceptions & Reality
Common Myths [15:31]
- Myth 1: AI is a silver bullet for all problems.
- Myth 2: Only valuable in large, complex settings; smaller firms are left out.
- Myth 3: Data must be pristine before AI can be used.
Reality:
“AI as a technology has the capability to kind of sift through both structured and unstructured data to be able to then produce the right output… you don’t need perfect data to get started.” – Gaurav Malhotra [16:11]
- Leveling the Playing Field: AI allows smaller companies to compete with large enterprises, breaking traditional barriers [17:15].
4. Escaping "Pilot Purgatory:" Laying a Strong Foundation for AI
Key Foundational Elements [18:22]
- Governance: Set clear, organization-wide policies and ethics.
- Risk & Security: Address at the enterprise, not just department, level.
- Strategy: Guideposts must be understood at every level, aligned with company goals.
- Continuous Improvement: AI adoption is not “one and done,” but a continual process.
Memorable Moment:
“This is not a one and done exercise. The technology continues to evolve. You have to have governance… on a continual basis.” – Gaurav Malhotra [20:53]
Analogy:
“AI is not an algorithm. It is about data, process, people, leadership and aligning those. If you don't have that foundation, the pilot will stay the pilot…” – Tevin Taylor [21:46]
5. Real-World AI Wins: Immediate Impact and Long-term Value
Examples [22:55]
- Logistics & Transportation: UPS uses AI for route optimization and fuel savings, improving driver satisfaction.
- Manufacturing: AI predictive maintenance reduces equipment downtime, improves quality and safety.
- Warehouse Automation: One CPG company dropped manual exception handling from 14,000 to 27 incidents per month using agentic AI [25:05].
Tevin’s Summary:
"AI is delivering on quick wins and cost savings... but also laying the groundwork for this adaptive supply chain that can make the future... more flexible." [26:36]
6. Agentic AI: From Analysis to Autonomous Decision-Making
- Definition: Agentic AI not only analyzes but acts—autonomously within set guardrails—optimizing supply chain responses in real time [27:48].
- Network Resilience: Agentic AI enables dynamic supply network redesign in response to tariffs, disruptions, or global volatility.
- Human in the Loop: Human validation and intervention are reserved for genuinely complex exceptions.
Quote:
"The primary difference [with agentic AI] is... the ability to be able to act on your behalf and in a lot of cases reliably act on your behalf..." – Gaurav Malhotra [28:35]
7. The Human Element: Augmentation, Not Replacement
- AI as Amplifier: AI is positioned as a tool to augment human creativity, enabling focus on differentiation and innovation, not mundane repetitive tasks [32:22].
- Workforce Upskilling: Companies are investing in training, reskilling, and culture change to harness AI’s benefits and minimize disruption anxiety [37:08].
- Key skills: Analytics, prompt engineering, change management, business acumen.
- Quote: “What this is going to do is leave humans for really creative critical thinking…” – Gaurav Malhotra [32:46]
- Culture of Embracement: Organizations must foster openness to change; “If you don't like change, you're not going to like extinction either.” – Tevin Taylor, quoting Fred Smith [35:02]
8. Keeping People at the Center
- Inclusion Drives Adoption: Involve frontline workers early in AI project pilots/design for faster adoption and stronger culture [46:05].
- "If you bring your operations, your sales, your marketing, the planners, the frontline employees …they’ll embrace it a lot faster." – Tevin Taylor [46:05]
- Communication & Storytelling: Strong internal communication is necessary to ensure employees feel part of the journey—not that AI is “done to them” [44:54].
9. The Next Five Years: AI’s Transformative Potential
Predictions [47:29]
- Autonomous Supply Chains: AI will drive more orchestrated, cognitive, and self-healing supply networks.
- Human Differentiation: Supply chain professionals will focus on opening new channels, developing new products, and discovering innovative business models.
- Responsible AI: Success hinges on responsible, ethical, and transparent AI use.
Quote:
“There is a notion that within five years… this technology in almost every case may become more intelligent than humans… technology will lead their supply chains to much tighter, orchestrated, cognitive, autonomous supply chains, no question.” – Gaurav Malhotra [47:29]
Notable Quotes & Memorable Moments
- “AI as a technology has the capability to kind of sift through both structured and unstructured data to be able to then produce the right output… you don’t need perfect data to get started.” – Gaurav Malhotra [16:11]
- “AI is not an algorithm. It is about data, process, people, leadership and aligning those. If you don't have that foundation, the pilot will stay the pilot…” – Tevin Taylor [21:46]
- “Agentic AI… gives us the ability to move towards… ecosystem orchestrated cognitive supply chains.” – Gaurav Malhotra [29:11]
- “This technology is going to be parallel to Internet for people like us. We use Internet so commonly. And what's going to happen is we're going to wake up on a daily basis. We're going to have a bunch of prompts that we will either send out or will be sent out on our behalf because of whatever, you know, workflow and algorithms we have.” – Gaurav Malhotra [00:00, 39:34]
- “It amplifies human value, does not replace it.” – Tevin Taylor [53:02]
- “If you don't like change, you're not going to like extinction either.” – Tevin Taylor (quoting FedEx’s Fred Smith) [35:02]
Timestamps for Key Segments
| Segment | Timestamp | |------------------------------------------------------|-------------| | Guest Intro & Family Pilgrimage/Supply Chain Story | 03:07–07:23 | | Supply Chain Resilience & Humanitarian Logistics | 07:44–09:03 | | EY’s Role & Modern Supply Chain Strategy | 09:51–11:29 | | Misconceptions About AI in Supply Chain/Factories | 15:31–17:49 | | Pilot Purgatory & Foundational Elements | 18:22–22:04 | | Real-world AI Wins (UPS, CPG, Predictive Maintenance)| 22:55–26:36 | | Agentic AI: Action, Not Just Analysis | 27:48–31:15 | | AI & Human Workforce: Augmentation, Upskilling | 32:22–41:17 | | Keeping People at the Center | 43:25–46:05 | | Five-Year Forecasts for AI in Supply Chain | 47:29–50:51 | | Episode Takeaways | 52:38–53:15 |
Episode Tone & Final Takeaways
The conversation was energetic, practical, and optimistic—marked by real-world anecdotes, friendly banter (including football and pizza), and candid discussion of both the possibilities and the challenges of AI in supply chain management.
Actionable Takeaways:
- Start with strong foundations: governance, data, security, culture.
- Pilot with purpose, then scale—don’t get stuck in “pilot purgatory.”
- Involve your people early and communicate openly.
- Invest in upskilling; AI amplifies human ingenuity, it doesn’t replace it.
- View AI as the next Internet—ubiquitous, indispensable, a platform for new forms of value.
Memorable Closing:
“It amplifies human value, does not replace it.” – Tevin Taylor [53:02]
For more insights and to connect with the speakers, find Gaurav Malhotra and Tevin Taylor on LinkedIn or visit ey.com.